Finance News Network Transcription of Interview with NuEnergy Gas Limited (ASX:NGY) Deputy Executive Chairman, Yong Wah Kee, Chief Operating Officer Benghong Lim and CEO Dr Ian Wang.Carolyn Herbert: Hello I’m Carolyn Herbert from the Finance News Network and joining me from NuEnergy Gas Limited
(ASX:NGY) is Deputy Executive Chairman, Yong Wah Kee. Kee welcome to FNN.
Yong Wah Kee: Thank you.
Carolyn Herbert: Can you start by giving us an introduction to the company?
Yong Wah Kee: We acquired NuEnergy in mid 2014 as a coal seam gas developer, we have total assets of 5,100 kilometres square in Indonesia. We want to deliver clean energy to the Indonesian market.
Carolyn Herbert: What attracted you to Indonesia and what’s your outlook for the energy market?
Yong Wah Kee: The outlook is great, Indonesia’s gas price is $US7-12 MMBTU, it’s a seller’s market. Just like China 20 years ago, there is a shortage of clean energy and we are in the position to deliver the clean energy. And Indonesia consists of the world ranking, the fifth largest coal bed methane reserves in the world and the pipelines. And all of this is in a good position.
Carolyn Herbert: Kee thanks for your time.
Yong Wah Kee: You’re welcome.
Carolyn Herbert: I’m now joined by Chief Operating Officer, Benghong Lim. Lim welcome to FNN.
Benghong Lim: Thank you.
Carolyn Herbert: Can you tell us about your current assets?
Benghong Lim: Our assets actually are developed into three main areas. One is South Sumatra, one is Central Sumatra and the other one is Kalimantan. Our main focus is in South Sumatra because of its locality, as well as the data available to us. In fact, we’re so confident with the data that we combined our exploration well into a production well, which we’re able to get the reserve booking specification recently. The total and resale resource that we have reported by NSAI, as well as RPS is around about three TCF.
At the moment, we’re using an open hole compression method, which is proven in Australia as well as in the US. And even at this very early stage, we are getting very good results, which is very encouraging. And going forward, we will continue to utilise more of this proven technology and to enhance our recovery, as well as the gas production rate.
Carolyn Herbert: Lim, thank you.
Benghong Lim: Thank you.
Carolyn Herbert: And finally I’m now joined by CEO, Dr Ian Wang. Ian thanks for joining us.
Dr Ian Wang: Thank you.
Carolyn Herbert: Can you start by telling us about the company’s cash position?
Dr Ian Wang: We’re in the midst of raising up to $AUD20 million. We will offer one ordinary new share for every two fully paid shares for existing shareholders, dated 20th April 2017, at a price of 3.5 Aussie cents.
Carolyn Herbert: What are you planning to spend on your activities this year?
Dr Ian Wang: The funds we’re going to raise are for three objectives. First of all, it’s to submit our POD towards the end of this year, in which we will provide the details design, detail a program to drill the wells to deliver the pace volume of the gas, to the market. And also infrastructure is required to deliver gas to our clients. Number two is to continue our production pace on existing pilots. Number three is to continue our reserve and migration program. The total expenditure for this year ranges between $AUD10 million to $AUD15 million.
Carolyn Herbert: Finally Ian. What makes an investment in NuEnergy Gas compelling and what’s your long-term ambition for the company?
Dr Ian Wang: As previously my colleagues already mentioned, we have one of the best reservoirs in Indonesia, South Sumatra. We’ve got very thick coal seams altogether. We have achieved our reserve certification that’s the very first in Indonesia. Secondly, we are moving now the preparation of planning of the development. So to get this POD approved by the Indonesian Government, we’ll become the very first of the production companies in Indonesia, to deliver gas to our clients.
And also NGY is going to become an integrated operator from upper stream, midstream to downstream. This puts us into a very unique position to develop coal seam gas in Indonesia. We’ll become the very first CHE producer in that country.
Carolyn Herbert: Dr Ian Wang, thanks for the update.
Dr Ian Wang: Thank you.
Ends
